People used to wonder whether the EU was forcing austerity on Spain because it wanted us to be more like Germany or because it wanted to force economic reform. Now it is clear that it wanted to force the reforms.
After the ECB injected some much-needed liquidity into the Spanish economy, for now it has stopped buying debt that will enable governments to accelerate reforms.
Draghi was very clear in his appearance on March 8: at this point politicians and banks are responsible for carrying out the work.
Until that happens, the EU will not reduce the pressure. Nor will we regain confidence.
